Most sellers focus on the sale price. Smart sellers also plan for the cost of getting there — because the difference between your sale price and what actually lands in your bank account can be larger than you expect. Here’s an honest breakdown of what it costs to sell a home in Ontario, and where those costs are genuinely worth it.
Costs are broadly similar whether you’re selling in Toronto, Markham or anywhere across the GTA — though commission, staging budgets and legal fees all vary by home and situation.
The big one: real estate commission
Commission is usually the largest selling cost, and in Ontario it is fully negotiable — there is no fixed or “standard” rate set by law. It’s typically expressed as a percentage of the sale price and split between the brokerage representing you (the listing side) and the brokerage that brings the buyer (the cooperating side).
A few things every seller should know:
- HST applies to commission (13% in Ontario), so factor that in
- The split between the listing and buyer-side brokerages is set out in your listing agreement
- A lower commission isn’t automatically a better deal — marketing, presentation and negotiation are what drive your final price
Commission is a fee for an outcome, not a line item to minimize in isolation. The right agent often more than pays for themselves through a stronger sale price and cleaner terms.
We’re always transparent about commission and what it funds. You can see how we approach a listing on our home-selling page.
Legal fees and closing costs
You’ll need a real estate lawyer to close the sale, and there are a couple of related costs worth separating out.
Your real estate lawyer
Expect a legal fee plus disbursements — title transfer, registration charges, courier and software fees, and so on. HST applies here too. Your lawyer reviews the closing documents, handles adjustments, and makes sure funds move correctly on closing day.
Mortgage payout and penalties
If you have a mortgage, your lawyer coordinates the payout. Two costs to anticipate:
- Mortgage discharge fee — a small administrative charge to remove the mortgage from title
- Prepayment penalty — if you break a fixed-rate mortgage before maturity, this can be significant; always check with your lender before you list
Preparing the home: staging, photography and repairs
This is where spending a little returns a lot. Buyers form an opinion in the first few seconds online, so presentation directly affects price.
- Staging — from a consultation and re-styling your own furniture, up to full rental staging for vacant homes
- Professional photography and video — effectively non-negotiable today, since the vast majority of buyers first meet your home online
- Pre-list repairs and touch-ups — paint, minor fixes, decluttering, deep cleaning
- Curb appeal — landscaping and exterior tidy-ups
We help sellers spend strategically here — fixing what buyers will notice and skipping what they won’t. The goal is the strongest return per dollar, not the longest to-do list.
Moving, overlap and carrying costs
Easy to overlook, real to your wallet:
- Movers, packing and storage
- Possible overlap if your purchase and sale don’t close on the same day — bridge financing can help, especially if you’re buying at the same time
- Utilities, property tax and condo fees up to the closing date
The capital gains question
If the home you’re selling is your principal residence, you generally do not pay capital gains tax, thanks to the principal residence exemption. That covers most homeowners.
It’s different for a property that isn’t your primary home — a rental, an investment property or a cottage. In that case, a capital gain (your proceeds minus your adjusted cost base and selling costs) is taxable. Currently, 50% of a capital gain is included in your income and taxed at your marginal rate.
A few notes:
- The rules around investment properties and partial-use scenarios get nuanced quickly
- Keep records of your purchase price, closing costs and capital improvements — they reduce the gain
- Always confirm your specific situation with an accountant. We can’t give tax advice, but we work alongside great ones
If you own an income property and are weighing a sale, our commercial sales team can help you think through timing and reinvestment.
So what’s actually left at the end?
Here’s a simple way to estimate your net proceeds:
- Sale price
- minus commission plus HST
- minus legal fees and disbursements
- minus mortgage payout (and any prepayment penalty)
- minus staging, photography and prep
- minus any capital gains tax (non-primary residences only)
- = what lands in your account
When we prepare a valuation, we walk you through this entire estimate up front — no surprises on closing day. Pricing is a major lever here too; getting it right protects every dollar of your equity, and it’s central to how we sell homes across the GTA.
Let’s map your numbers
Every home and every seller is different, so the smartest first step is a personalized net-proceeds estimate. We’ll review your home, recent comparable sales, and the costs above so you know exactly where you stand before you list. Get in touch through our contact page — and because we’re usually out with clients, a text reaches Daniel and Heather fastest.